About Arohan Financial Services Unlisted Shares

A) Arohan Financial is a leading NBFC-MFI with operations in financially under-penetrated Low Income States of India. They provide income generating loans and other financial inclusion related products to customers who have limited or no access to financial services.

B) Started in the year 2006, Arohan Financial is the largest NBFC-MFI in Eastern India and the fifth largest NBFC-MFI in India based on Gross Loan Portfolio as of September 30, 2020. Arohan Financial has seasoned business model incorporating well-established risk management framework, loan approval processes and recovery drives.

C) As of March-2023, its Gross Loan Portfolio (“GLP”) is ~5357 Crores. In the last 3 years they were having the second highest loan portfolio CAGR of 68.00% among the top five NBFC-MFIs in India.

D) As of March-2023, Arohan Financial microfinance business’ branch network consisted of 829 branches in 11 states and MSME lending business’ branch network consisted of 10 branches in eight states.

E) Under Microfinance portfolio, the company has 97% women customers to whom they have given loans.

F) The promoters of the company are Aavishkaar Venture Management Services Private Limited (“AVMS”) and Intellectual Capital Advisory Services Private Limited (“I-Cap”). Other institutional investors include Tano India Private Equity Fund II, Maj Invest Financial Inclusion Fund II K/S, Michael & 137 Susan Dell Foundation, TR Capital III Mauritius, ASK Financial Holding Private Limited and Kiran Vyapar Limited. G) In FY23, Arohan Financial has Revenue of 1090 Crores, PAT of 71 Crores and Gross NPA of 2.80%. H) Book value as on 31.03.2023 = 90 and EPS = 6.

So, accordingly, the share at INR 155 is available at P/E of25x and P/B of 1.72x, which is reasonable. The company has recently filed DRHP to bring IPO.